FXWIREPRO: EUR/JPY Capped Below 10-Dma at 125.75, Momentum Bearish
- EUR/JPY is extending decline, sees strong trendline resistance at 126.20.
- Some rumors of a possible BOJ's intervention, lead to a slide in the Japanese currency by the end of the week.
- We see a Doji formation in the pair in the Asian session, breaks below 125.50 could resume weakness.
- Liquidity today much thinner than usual due to the Japanese bank holiday of Vernal equinox day.
- On the upside, resistances are seen at 125.75 (10-DMA), then 125.84 (5-DMA) and 126.20 (falling trendline).
- On the flipside, supports are located at 125.26 (Mar 18th lows), 125.09 (Mar 15th lows) and 124.75 (trendline).
- Our short call on the pair (http://www.econotimes.com/FxWirePro-EUR-JPY-rejected-at-12662-strong-trendline-resistance-good-to-sell-rallies-180266) is progressing.
Recommend holding for targets.
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